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Preparer PT [3/14/2013]
Reviewer [JO 3/14/2013]
Audit Purpose: The purpose of this working paper is to test the subtractive reconciling items per the Community Bank reconciliation located at wp 5120(M) to address
the risk of material misstatement identified below:
Cash risk Cash 001-There is a risk that the bank account as per the general ledger may be misstated due to incorrect reconciling items.
Audit Procedures: The following procedure has been performed in this working paper to address the risk documented above:
WP 5100
In accordance with substantive procedure Cash-SP-001 related to cash risk Cash-001 in working paper 5130 Cash MAP:
- For all bank reconciliations, select a sample of reconciling items using audit sampling.
- Perform tests of details on the selection of reconciling items and determine if they are appropriate.
Was the source of the population
documented? Depending on the selection
method and objective of the test were
items greater than performance materiality
separately selected?
Results: Based on testing performed, subtractive items appear properly included as reconciling items in the bank rec. as of Dec. 31 2012
Sample size:
$
2,689,000 {a}
1,308,668 {e} A
1,380,332 Rx
Population
Total Items > Performance Materiality
Remaining Population
Performance Materiality
Risk
Controls
642,000 {b}
Not Significant {b}
Not Relying
{b}
2.15 {b}
5 {c}
2
7 Rx
Testing:
#
Is there documentation or
a reference where
performance materiality,
classification of risk, and
control reliance were
obtained from and how
the sample size is
calculated?
Check #
Amount
$
Date per
Bank
665,382 5-Jan-13
643,286 8-Jan-13
1,308,668 A
8,639
58,765
20,901
44,609
18,732
9-Jan-13
17-Jan-13
4-Jan-13
8-Jan-13
15-Jan-13
Date per
Check
31-Dec-12
3-Jan-13
Yes
Yes
{d}
{d}
5-Jan-13
13-Jan-13
30-Dec-12
29-Dec-12
5-Jan-13
Yes
Yes
Yes
Yes
Yes
{d}
{d}
{d}
{d}
{d}
T/m
Note that this performance support does not replace the AAM. It should be read in conjunction with the applicable AAM topics, as the manual states
the requirements of our audit approach and provides further guidance.
Where there is a
calculation, has
documentation been
provided to show that it
calculates accurately?
Tickmarks
{a}
The population was obtained from Jan 1 - Jan 31, 2013 Community Bank
bank statement. Represents total amount of debits during the period per the
bank statement.
{b}
{c}
{d}
Agreed amount, date, and payee to copy of cancelled check (check honored
by the bank and stamped as having been processed to ensure it cannot be
presented again), noting propriety of date (i.e. prior/subsequent to year-end).
Noted proper inclusion/exclusion of item within detail of subtractive
reconciling items as of 31-Dec-2012.
{e}
This amount represents the total of all the items greater than performance
materiality in the population (Note: Based on our understanding of the
transactions flowing through the bank account that we obtained as part of our
risk assessment procedures, we determined that payments over the amount
of performance materiality are to be selected during the testing of the
reconciling items on the bank reconciliation). These have been selected for
testing based on the risk identified and were removed from the original
population in order to determine how many more selections must be made
for this representative sample.
{f}